Markets
Sei Price Consolidation Predicts 40% Drop as Crypto Market Falls Low
- Sei price is consolidating in a descending triangle pattern.
- A breakout of this setup predicts a 40% drop to $0.271.
- A quick move from the $0.560 hurdle to support will invalidate the bearish thesis.
Sei Price (SEI) consolidation is coming to an end, which could soon result in a volatile breakup. SEI investors need to be cautious as the crypto market outlook looks bleak.
Read too: Sei Price Action Predicts an Opportunity to Accumulate SEI
SEI price approaching a breakout
SEI price action between April 16 and June 8 created five lower highs and three equal highs. Connecting these swing points using trend lines shows the formation of a descending triangle configuration. This bearish pattern predicts a 42% drop, obtained by adding the distance between the first swing high and the swing low to the $0.467 breakout point.
The predicted target is at the lower limit of the weekly imbalance, extending from $0.350 to $0.265. The confluence of the theoretical target combined with the weekly imbalance makes it a good level for accumulation.
The Relative Strength Index (RSI) has been struggling below the average level of 50, suggesting that the bulls are not grouped together. If this outlook holds, then the theoretical prediction could come into play.
SEI/USDT 1-day chart
Although the overall market outlook is bearish, if the price of Bitcoin (BTC) spikes, it could ruin this bearish outlook. In this case, if the SEI price produced a decisive daily close above $0.560, it would create a higher high and invalidate the bullish thesis.
This development could see SEI price attempt a retest of the $0.649 barrier after a 16% movement.